Gold Price Prediction for November 15, 2017

Gold prices perked up as the dollar lost ground despite a hotter than expected U.S. PPI report.  Resistance is seen near the 50-day moving average at 1,291, while support is seen near the 10-day moving average at 1,278.  Momentum is neutral as the RSI (relative strength index) chopped sideways printing a reading of 51, which is in the middle of the neutral range and reflects consolidation.

PPI Was Hotter than Expected

There was a big 0.4% U.S. October PPI headline and core price gains that both repeated their hurricane-boosted September increases. The upside surprise reflected a 0.5% service price rise after a 0.4% September gain, with component gains of 1.1% for trade services and 0.8% for transportation and warehousing services after big respective September gains of 0.8% and 1.0%. There was a 0.3% goods price rise with a flat energy figure and a 0.5% food price gain, after respective September figures of 0.7%, 3.4%, and unchanged.